South Korea's Financial Services Commission (FSC) has unveiled plans to introduce spot cryptocurrency exchange-traded funds (ETFs) by the second half of 2025, signaling a significant shift in the country’s regulatory stance towards digital assets. This change comes under the new government, reversing a ban on crypto ETFs that had been in place since 2017, which was based on concerns over financial stability. The FSC aims to enhance investor protection through a comprehensive framework addressing custody, operation, and evaluation standards. Additionally, the commission plans to allow companies to issue Korean won-based stablecoins, contingent on having sufficient equity capital. These moves are part of President Lee Jae-myung's broader agenda to foster a crypto-friendly environment, following recent successes with cryptocurrency regulation in other countries. The FSC's proposals, however, still require legislative approval before becoming final, highlighting the ongoing discussion within South Korea regarding cryptocurrency regulation.

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